United Technologies Corp. (UTC), based in Farmington, Connecticut, and Cedar Rapids, Iowa-based Rockwell Collins Inc. have reached an agreement under which United Technologies will acquire Rockwell Collins for $140.00 per share, in cash and UTC stock. The purchase price implies a total equity value of $23 billion and a total transaction value of $30 billion, including Rockwell Collins' net debt. The deal is expected to close in the third quarter of 2018.
Rockwell Collins provides commercial and military customers with avionics, flight controls, aircraft interior and data connectivity solutions. In April 2017, the company completed acquisition of aircraft cabin interior manufacturer B/E Aerospace for $8.6 billion.
United Technologies Corp. includes Pratt & Whitney commercial and military jet engines and UTC Aerospace Systems, a supplier of cockpit controls and cabin equipment; nacelle components; electrical, engine, and environmental control systems; sensors; data management; and MRO services for commercial and defense customers.
Upon completion of the transaction, Rockwell Collins and UTC Aerospace Systems will be integrated to create a new business unit named Collins Aerospace Systems. Kelly Ortberg will assume the role of chief executive officer with Dave Gitlin serving as president and chief operating officer.
"This acquisition adds tremendous capabilities to our aerospace businesses and strengthens our complementary offerings of technologically advanced aerospace systems," said UTC Chairman and Chief Executive Officer Greg Hayes. "Together, Rockwell Collins and UTC Aerospace Systems will enhance customer value in a rapidly evolving aerospace industry by making aircraft more intelligent and more connected."
Chairman, President and Chief Executive Officer of Rockwell Collins Kelly Ortberg said, "The combination will enable us to compete more effectively for future business through continued investments in innovation, world-class integrated product offerings, and the ability to retain the top talent in the industry."
UTC reaffirmed its expectations for 2017 sales of approximately $58.5 to $59.5 billion. Rockwell Collins’ 2017 pro-forma estimated sales are greater than $8 billion.